Life

As per last weeks IRDA announcement, no insurance company can invest more than 10% of its total fund size or 10% of the outstanding shares of the investee company (whichever is less) in any company.
Since the annoncement the Insurance industry had been abuzz with discussions on how this would impact the biggest Life Insurance player- LIC.

It seems that the answer is - that it would not :-)
Finance Ministry resources said that IRDA is examining an option to exempt LIC's existing investments from these norms and apply these only on its new investments.
If this option is not offered to LIC, it could impact a lot of blue chip companies like Ranbaxy, ITC, Cipla, L&T etc where LIC currently has a substantial stake.